According to the Associated Chambers of Commerce and Industry of India (Assocham), Kerala is the only state in India to have recorded a growth in Industrial Entrepreneurs Memorandum (IEM) proposals during the period of 2012 to 14 as against 2009-11.
Large scale industries having investment more than Rs 10 crore in manufacturing sector and more than Rs 5 crore in service sector are primarily in the purview of IEM license. The items which are not exclusively reserved for manufacturing under small scale industry will have to file an application for IEM.
In a recent study – ‘Realising economic growth potential in Kerala’ Assocham claims that growth rate of IEM proposal to Kerala is as big as 315 percent. During 2012 to 14, Kerala received IEMs worth Rs 17,600 crore which is close to one percent of the total worth of IEMs received across India.
Also the state was successful in attracting outstanding investments worth about Rs three lakh crore during the period. It should be noted that it almost came close to two percent of the total outstanding investments worth Rs 157 lakh crore that was received in India as of 2015.
Assocham said in the study that service sector (except financial sub sections) accounted for the largest share of 54.5 percent in total outstanding investments in the state. It was followed by manufacturing sector with 27.5 percent, eight percent in real estate and construction sector and 7.5 in electricity.
“Investments attracted by Kerala have grown at a Compounded Annual Growth Rate (CAGR) of over 13 percent during the course of past decade i.e, between 2004-05 and 2014-15,” Assocham Secretary General D S Rawat told moneycontrol.com.
However, the study by Assocham noted that about 54 percent of the total investments received in Kerala have remained as non-starters till 2015.
Though it is sure to benefit economy of the state as well as the country, what remains to be seen is how many of these proposals are actually going to see light.
